The LGU released photos of the closed Smart office located at 6799 Ayala Ave. in Brgy. San Lorenzo on Monday. It said it issued a closure order against Smart for supposedly operating without a business permit since 2019.
THE Makati City government it closed down the main office of Smart Communications Inc for allegedly operating without a business permit since 2019.
The company allegedly failed to pay a franchise tax deficiency of over P3.2 billion, said the Makati City government on Monday.
In a statement, the Makati LGU said Smart failed to obtain relief from courts over the P3.2 billion franchise tax covering January 2012 to December 2015.
The LGU released photos of the closed Smart office located at 6799 Ayala Ave. in Brgy. San Lorenzo on Monday. It said it issued a closure order against Smart for supposedly operating without a business permit since 2019.
“When businesses in Makati choose to operate without a valid business permit, they are essentially operating outside the law. This is unacceptable, and I want to make it clear that we will not tolerate this kind of behavior, whether you are a big or small company,” Makati City Administrator Claro Certeza said.
In an order of desistance/closure on Feb. 23, the LGU said Smart’s headquarters violated the Revised Makati Revenue Code.
“You are hereby commanded to cease and desist from further operating your business establishment until such time compliance with the said ordinance is made,” the order read.
In 2016, the Office of the City Treasurer launched a probe on the P3.2 billion franchise tax allegedly owed by the telco to the government, it said.
Certeza said Smart was ordered to submit a breakdown of revenues and business taxes paid in all branches nationwide but it allegedly refused to present the documents.
Smart in 2018 filed a petition for review before the Makati Regional Trial Court Branch 133 to seek the nullification of the Office of City Treasurer’s Notice of Assessment, which stated that the telecommunications giant did not pay the franchise tax.
But the court granted a a motion for production and inspection of documents filed by the LGU, it added. On May 31, 2019, Smart filed an opposition against Makati’s motion before the Court of Tax Appeals. The CTA denied Smart’s petition in 2022, the local government added.
